Bob and Bill Allocate 2/3 of the Profits and Losses

question 160

Multiple Choice

Bob and Bill allocate 2/3 of the profits and losses to Bob and 1/3 to Bill. The net income of the firm is $30,000. The journal entry to close the Income Summary will include:

• A)credit to Income Summary for $20,000.
• B)debit to Bob, Capital for $10,000.
• C)credit to Bob, Capital for $20,000.
• D)credit to Income Summary for $30,000.

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Definitions:

Food And Drug Administration

The Food and Drug Administration (FDA) is a federal agency of the United States responsible for the regulation and supervision of food safety, tobacco products, dietary supplements, prescription and over-the-counter pharmaceutical drugs, vaccines, biopharmaceuticals, medical devices, and veterinary products.

Consumer Financial Protection Bureau

A U.S. government agency that aims to ensure consumers are treated fairly by banks, lenders, and other financial institutions.

Federal Reserve Board

The governing body of the Federal Reserve System, responsible for overseeing the nation's monetary policy and regulating banks.

Net Quantity

The actual amount or quantity of a product, excluding any packaging or container.